The Christie administration has put out a request looking for a private company to manage the New Jersey Lottery.

But Democrats in the Legislature, along with a coalition of small businesses and union members, are questioning the proposal, worried it could reduce revenue to the state and block small businesses from selling tickets.

The Assembly Budget Committee will hold a hearing this morning to look into the idea. Check northjersey.com for full coverage of the meeting.

The stakes of the proposal are high: The lottery’s profits help pay for education and social services programs. It is New Jersey’s fourth-largest source of revenue, according to nj.com.

Under the administration’s plan, the state would still own the lottery, but a private company would be responsible for sales and marketing. The company would keep a portion of the profits and would be penalized if revenue falls below expectations.

The state’s request for proposals, which has a revised deadline of Dec. 11, requires the winning company to pay $120 million up front and sign on to a 15-year contract.

The Treasury Department, which oversees the lottery, says its goal is to increase revenue, but a group of small businesses that sell lottery tickets and union members who work for the lottery are campaigning against the proposal. They say a private operator might lay off employees and charge vendors more, essentially forcing small businesses out of the lottery business.

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The Bloggers

Melissa Hayes, who has worked at The Record since 2010, covers Gov. Chris Christie and politics for the State House Bureau. Follow her on Twitter at @Record_Melissa. View all of her posts

Herb Jackson is the Washington correspondent for The Record, covering North Jersey issues on the Potomac, including the activities of the congressional delegation and federal policies that affect the region. Follow him on Twitter @Record_DC.View all of his posts.

John Reitmeyer, a reporter in the State House Bureau since 2007, focuses on taxes, state budgets, campaign finance and government ethics. Follow him on Twitter @JohnReitmeyer. View all of his posts

Charles Stile is the political columnist for The Record. He is a former State House Bureau chief at The Record and has covered politics and government in New Jersey for more than two decades. Follow him on Twitter @PoliticalStile. View all of his posts